|September 2013 Newsletter|
Predictive analytics uses technology to predict the future and influence it. Organizations can use historical performance data to extrapolate and make predictions about the future and take actions that would affect those results.
Predictive analytics empowers organizations to plan for the future, which can transform an uncertainty into a usable action with high probability.
Predictive Analytics is becoming prevalent in many sectors and industries. We are seeing applications in Financial Services, Telecommunications, Transportation, Health Care, Retail, Manufacturing, Law enforcement to name a few:
- Predictive models are developed to help prevent churn. The objective of the models is to identify those customers with a propensity to quit, the factors affecting their behavior and allow for an intervention before they quit.
- Upsell and Cross sell models are developed to help grow business from existing customers.
- Predictive models are developed to measure the effectiveness of different marketing campaigns.
- HR departments are using Predictive models to identify the best candidates for a given position and the likelihood of an employee leaving.
Predictive Analytics offers a unique opportunity to identify future trends and allows organizations to act upon them. As Dr. Siegel�
states, data is the "collective experience of an organization" and building machines that can harness such data in order to find patterns that hold true in new situations is important. With a growth in big data and the evolving nature of Business Intelligence, Predictive Analytics
can offer valuable insights for organizations.
Predictive Analytics trumps intuition.
Source: 1. http://www.predictiveanalyticsworld.com/book/
2. Eric Siegel answers eight questions about predictive analytics